Treasuries jump as traders sell equities, commodities
EPA / JUSTIN LANE Treasuries jump as traders sell equities, commodities
As markets saw a slump on Tuesday in risk assets, following United States President Donald Trump's threat to tariff more import merchandise from China, investors rushed to bonds, perceived as a safe haven. A rally in the value of sovereign debt issued by the US, the United Kingdom and Germany translates to a drop in yields. In a volatility burst, precious metals also sold off, while major stock indexes in New York all suffered losses of more than 1%.
The two-year US notes yielded 2.5286% or 2.06 basis points less for the day at 4:24 pm CET. The ten-year yield slumped 3.84 points to 2.8785%, compared to the fall of 3.79 points to 3.011% for the 30-yield bonds. Equivalent British yields were down 2.4 points at 0.696%, 5.1 at 1.273% and three points to 1.752%, respectively.
The German two-year note yield declined 1.2 points to a negative 0.628%. The 10-year Bund yielded four points less in the session – 0.358%, and the 30-year debt yield fell 5.7 points to 1.124%. Italian government bonds diverged and dropped sharply, more on the near-term side of the curve than for maturities with later dates.